Abstract
This study aims to determine the multi-sided factors of crowdfunding campaigns on the fundraising success of crowdfunding projects conducted in ASEAN-5 (five big countries in The Association of Southeast Asian Nations) countries between 2014 and January 2019 through a multi-theory approach. Using secondary and cross-section data from Kickstarter, this research uses the probit regression method to analyze the data and test the hypotheses. First, in line with the goal setting theory, small-sized projects are more likely to be funded. Second, the large teams are preferable by the potential backers, in line with the resource-based view of firms. Further, the self-determination theory shows that rewards are one of the big extrinsic motivations for the backers in ASEAN. Moreover, our paper also shows the remarkable result with the funding target which has negative influence to probability success of crowdfunding. This is because our project samples are used from the ASEAN countries whose owner or investor is more concerned to be risk averse than a risk taker. These results provide insight and bring a contribution to the crowdfunding literatures in ASEAN.
Highlights
In recent years, crowdfunding has become an alternative source of external funding for a project that has a profit or non-profit orientation in various countries
The success of a crowdfunding project campaign is influenced by the organizational factors that involve the campaign’s specification and design, and marketing factors that connect the potential backers to the campaign (Lagazio and Querci 2018)
A previous study seems to prove that funders pay no attention to social impact projects, this study aims to ascertain whether altruism and warm-glow feeling have a major role in investment decisions for crowdfunding pro-social project campaigns in ASEAN 5-countries
Summary
In recent years, crowdfunding has become an alternative source of external funding for a project that has a profit or non-profit orientation in various countries. Crowdfunding has been growing until now because the number of successful crowdfunding projects is increasing. Among the various types of crowdfunding, reward-based crowdfunding is one of the most widely used by project owners and backers (Belleflamme et al 2014; Mollick 2014). The success of a crowdfunding project campaign can be reflected in the performance of targeted fundraising. When the amount of funds from the crowdfunding project campaign collected successfully exceeds the target amount of funds, the crowdfunding project can be declared successful. The success of a crowdfunding project campaign is influenced by the organizational factors that involve the campaign’s specification and design, and marketing factors that connect the potential backers to the campaign (Lagazio and Querci 2018)
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